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Question) You read in the Wall Street Journal that the implied equity risk premium has increased overnight from 5.9% to 6.8%. Which of the following
Question) You read in the Wall Street Journal that the implied equity risk premium has increased overnight from 5.9% to 6.8%. Which of the following statements is more likely to be correct? a. The SML has a steeper slope b. The market return is higher than the cost of equity c. The beta of the market portfolio has increased d. Investors risk tolerance has increased
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